Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
The Quick Read: Yes, but only in a narrow lane, because a 620 is a real floor in parts of the DSCR market (loans qualified mainly on the property’s rent), and it usually comes with lower leverage, tighter reserves, and a smaller cash-out. Most programs want about 660, and 700 or higher opens the strongest tiers.
- A 620 is the floor in some programs, not an approval, and it is rarely the floor for cash-out.
- Lenders use your middle score of three bureau scores, not your best one.
- On cash-out, standard rentals top out around 75% LTV (loan-to-value, the loan as a share of the property’s value).
- Rent has to cover the full payment, and clearing 1.00 coverage does not mean the property cash flows.
- A broker with access to many programs matters most at the low end of the credit range. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
DSCR Cash-Out Calculator
Run the cash-out numbers in your market
Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your property’s value, balance, taxes, and insurance for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Property value, balance, taxes, and insurance are editable estimates. Maximum loan-to-value varies by lender, program, property type, and seasoning. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
What Does a 620 Score Actually Change?
A 620 changes the price of the deal more than the yes or no. Across the wholesale network of DSCR lenders that Lendmire works with, a 620 floor exists in parts of the network, most programs want around 660, and 700-plus unlocks the highest leverage tiers. Subject to lender guidelines, each step down in score tends to cost you something.
Here is what that cost usually looks like:
- Lower leverage. The LTV cap tightens as the score drops, so you borrow a smaller share of the value.
- Higher pricing. Pricing is tiered by score, and the tiers get steeper toward the bottom.
- More scrutiny on reserves. Reserves are cash you hold after closing. They are commonly around six months of PITIA (principal, interest, taxes, insurance, and any association dues).
- A smaller menu. Fewer programs accept the file, and some of them will not do cash-out at that score.
This is why “can I refinance at 620?” is only half a question. The better one is what the loan looks like once the score sets the limits.
What Do Lenders Check Beyond the Score?
Lenders check the score, the equity, the rental coverage, the reserves, and the property type. They treat these as separate tests, and a file has to clear all of them. A 620 interacts with each one.
| Factor | What it tests | Effect of a 620 |
|---|---|---|
| Credit score | Repayment history | Narrows program choices |
| LTV | Equity cushion | Cap tightens |
| DSCR | Rent vs. full payment | Stronger ratio often expected |
| Reserves | Cash after closing | Usually near the high end |
| Property type | Collateral eligibility | No change, but no exceptions |
Reserves vary by lender, leverage, loan size, and transaction type. Conservative rate-and-term files at modest leverage under $1,500,000 can see reserves waived. Loans above that size typically step up to about nine months.
Property type is the quiet deal-killer. Manufactured homes, log homes, and barndominiums are not offered in the network’s DSCR programs, and no credit score changes that.
How Does Rental Coverage Work?
Coverage, or DSCR, is monthly rent divided by the full monthly payment. The payment includes principal, interest, taxes, insurance, and association dues, which is PITIA. A property with rent equal to the payment sits at 1.00. A ratio of 1.25 means rent runs 25% above the payment.
The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. No pay stubs or debt-to-income test are involved. Many programs ask for a market rent estimate from the appraiser, along with a full appraisal.
Here is the part new investors miss. A ratio of 1.00 or more is not positive cash flow. DSCR counts rent against PITIA only. Repairs, vacancy, management, utilities, and capital expenses all sit outside the calculation. A property can clear 1.00 and still lose money after a roof repair.
On the 1.00 floor itself: 1.00 is where many select programs start, and a separate select-lender path takes coverage below 1.00 with leverage and terms adjusted. A borrower at 620 is the least likely to be offered the sub-1.00 path on good terms, because a thin score and thin coverage compound each other.
A bigger down payment helps. It lowers the payment and can lift coverage. It never erases a credit floor, a reserve rule, or a property-eligibility rule. The strongest files clear both tests: enough equity and enough rent.
Which of Your Three Scores Counts?
The middle one counts. The CFPB explains that most mortgage lenders look at Equifax, Experian, and TransUnion and use the middle score. The CFPB also advises correcting report errors well before you apply and avoiding new credit applications while the file is open.
So “I have a 620” means little until you know all three. Picture scores of 640, 625, and 600. The middle is 625, and one 600 would still put you near or under a program floor on a different day. A single low bureau score can sink a file even when the other two look fine.
Your credit app may also show a different number than the lender pulls. Mortgage lenders typically use older FICO models, which can differ from consumer apps, so expect a gap.
If two people sign the loan, the lender needs one qualifying score. A common approach is to take each person’s middle score and use the lower. DSCR programs set their own rules, and the same pattern is common. Adding a co-signer with a stronger score does not always lift the file, because the lower score can still govern.
Rate-and-Term vs. Cash-Out at 620
A rate-and-term refinance replaces your current loan without pulling equity out. A cash-out refinance replaces it with a larger loan and hands you the difference. Cash-out is the harder lane at 620 because the lender is lending more against the same property.
| Factor | Rate-and-term | Cash-out |
|---|---|---|
| Score floor | Lower in more programs | Often higher |
| Leverage | Higher caps available | About 75% LTV on standard rentals |
| Seasoning | Often lighter | About 6 months common |
| Reserves | Waived in some files | Closer to six months |
| Fit at 620 | More realistic | Program by program |
Seasoning is the waiting period between buying the property and refinancing it. Cash-out typically wants about six months, and rate-and-term is more flexible.
The cap deserves a precise reading. Across most of the network, standard long-term rentals top out around 75% LTV on a cash-out. Short-term rentals sit lower. Cash-out on short-term-rental collateral is around 70%, while standard rentals are around 75%. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
If you are running a BRRRR strategy (buy, rehab, rent, refinance, repeat), this matters. A 620 score can mean less cash out, which shrinks the capital you recycle into the next deal. Plan the exit around the leverage you will actually get, not the leverage you hope for.
What About Short-Term Rentals at 620?
A 620 generally does not fit a short-term rental refinance. Those programs expect a 640-plus score and about 12 months of hosting history. Purchase leverage tops out at 75% LTV, refinance runs around 70%, and cash-out around 70%. Purchases carry a 1.00 coverage floor, and refinances carry a 1.00 floor too.
Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income. At 620, a long-term lease is usually the cleaner path.
Three Scenarios
These are hypothetical files built from typical network patterns, not guarantees.
The strong-equity file. Say you own a duplex you bought years ago, and you want to refinance at modest leverage with a rate-and-term structure. Your middle score is 620, rents clear about 1.3x, and you have the reserves. This is the best shape for a low score. The lender is taking little risk on equity, and your coverage carries the file. Pricing still reflects the score, but a program with a 620 floor may fit, subject to lender guidelines.
The thin-coverage file. Picture a single-family rental near 75% LTV on a cash-out, with a 620 middle score and coverage around 1.0x. The credit floor, the cap, and the thin ratio all press at once. This is where files stall. Options include dropping the loan amount, waiting for a higher score, or reviewing the select-lender path that goes below 1.00 coverage with leverage and terms adjusted. Any of those depends on lender review of the property and your credit.
The two-guarantor file. Consider two partners buying through an LLC (subject to program terms). One has a 700 middle score, and the other has a 620. The lender will usually look to the lower qualifying score, so the partnership gets 620 treatment. If the 700 partner can carry the loan alone on a personal guarantee, the file may price better. That depends on the program and on whether the entity structure allows it.
How Do You Strengthen a Borderline File?
You strengthen it by moving the levers you control, in this order:
1. Pull all three reports. Fix errors first, as the CFPB suggests. This is one of the most affordable improvements available.
2. Stop new credit. Hard inquiries and new accounts can nudge the middle score down just before you apply.
3. Lower the balance on revolving debt. Utilization is one of the faster score levers.
4. Lower the leverage you ask for. A smaller loan against the same rent improves coverage and fits tighter caps.
5. Add reserves. Cash left after closing can offset a thin score in some programs.
6. Show a clean recent housing history. Recent late mortgage payments, a bankruptcy, or a foreclosure can weigh more than the score itself.
Experience helps too. Many programs prefer borrowers who already own and manage rentals, and first-time investors often face a higher floor. If you are close to a tier, such as 640 to 660, waiting a short stretch to clear the tier can change the whole file.
What If You’re Below 620?
Below 620, most DSCR programs in the network are closed to you. You have three realistic paths. You can raise the score and reapply. You can use a short-term bridge, such as asset-based or hard-money financing, while the score recovers. Or you can look at structures that do not lean on a traditional score at all, which Lendmire covers in its article Rental Property Cash-Out Refinance for Borrowers Without a Credit Score.
Bridge money costs more and carries its own deadline. Use it only if the numbers still work after you pay for it. Often the better move is waiting.
DSCR vs. a Standard Mortgage at a Glance
Conventional investor loans follow agency guidelines and require full income and debt-to-income documentation. DSCR loans qualify primarily on property-level rental income, subject to lender guidelines, which is why they attract self-employed investors and those with large portfolios. Lendmire’s complete DSCR loans guide covers the full comparison.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. Credit still matters, though. DSCR loans drop income verification, not the credit check.
What Does the Process Look Like?
The process runs in a predictable order:
1. The lender pulls all three bureaus and takes your middle score.
2. The appraiser values the property and estimates market rent.
3. The lender calculates coverage from rent against PITIA.
4. The lender reviews reserves, entity documents, and payoff details.
5. Title work confirms the lien being paid off.
Typical documents include ID, the credit report, the current lease if there is one, the appraisal, entity documents if the loan closes in an LLC, a payoff statement, and proof of reserves.
Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
Common Mistakes at 620
- Treating the stated floor as an approval. A floor is the starting line. Leverage, coverage, and reserves still have to work.
- Quoting your best score. The middle score counts, so check all three.
- Assuming cash-out follows rate-and-term. The same program can accept one and decline the other.
- Ignoring insurance and tax changes. A jump in either can drop coverage below the line you needed.
- Reading 1.00 as profit. Coverage ignores repairs, vacancy, and management.
- Applying to one lender. Floors and caps differ widely, so one decline says little about the market.
Key Terms Defined
DSCR (debt service coverage ratio): monthly rent divided by the full monthly payment on the property.
PITIA: principal, interest, taxes, insurance, and association dues, the full monthly cost the rent has to cover.
LTV (loan-to-value): the loan amount as a share of the property’s value.
Middle score: the median of your three bureau scores, which lenders use as your qualifying score.
Seasoning: the waiting period between buying a property and refinancing it.
Reserves: cash you keep after closing, usually counted in months of PITIA.
Cash-out refinance: a new, larger loan that pays off the old one and gives you the difference in cash.
Frequently Asked Questions
Is 620 the minimum credit score for every DSCR refinance?
No. There is no national minimum for a DSCR loan. Each program sets its own floor. A 620 floor exists in parts of the network, most programs want around 660, and 700-plus unlocks the strongest leverage. Cash-out floors are often higher than rate-and-term floors.
Can I do a cash-out refinance on a rental at 620?
Sometimes, but it is the harder lane. Cash-out tops out around 75% LTV on standard rentals, and at a 620 score the program may cap you lower or decline it. A rate-and-term refinance is more realistic at that score, subject to lender guidelines.
Does a co-borrower with better credit help?
Not always. When two people sign, lenders commonly use the lower of the two middle scores. A stronger partner helps most when the program lets that person carry the loan alone. Review that option before you add anyone to the file.
Will a 620 score hurt my pricing even if I qualify?
Usually yes. Pricing is tiered by score, and higher leverage makes it worse. You pay for the score through price, cap, and reserves, which is why a smaller loan at the same rent can work better.
What should I fix first if I’m just under a tier?
Pull all three reports and correct any errors, then stop opening new credit and pay down revolving balances. Moving from the low 600s to a higher tier can change which programs, and which leverage caps, are open to you.
Next Step
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. As a broker, it arranges financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Lendmire’s piece on the minimum credit score for a cash-out refinance is a good companion read. Any illustrative calculator estimate is a starting point, not a quote or a commitment to lend.
At 620, the rent is rarely the problem. Your middle score sets the leverage, so pull all three reports before you pick the loan.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR loans are evaluated by the lender on rental income rather than personal income, subject to lender guidelines — a fit for LLC-owned portfolios, self-employed investors, and operators scaling beyond conventional loan caps. Recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB – Ask CFPB (credit score and mortgage)
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Refinance a Vacation Home Into a DSCR Loan Under an LLC · How to Prepare a Rental so the DSCR Appraisal Supports Value and Rent · DSCR vs Conventional Differences on a Two-to-Four Unit Rental
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.